Question

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	7.30	pounds	$	2.80	per pound	$	20.44
Direct labor	0.60	hours	$	9.00	per hour	$	5.40

During the most recent month, the following activity was recorded:

1. 16,600.00 pounds of material were purchased at a cost of $2.50 per pound.

2. All of the material purchased was used to produce 2,000 units of Zoom.

3. 1,000 hours of direct labor time were recorded at a total labor cost of $12,000.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.

(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.)

1. Materials price variance Materials quantity variance 2. Labor rate variance Labor efficiency variance

Answer 1

AnSuves Given data Huson Company pooduresa Commeotiai cleaning compound Known as 2com dlrsect e glven, below Rate cost ealculate the droedt mateolals poce yaslane as sh below

2 Cstandasd Pce-Acal poire) x Actual ($2.80-$250 x16600 pounds -$0.3o X IG, 600 pounds Thus, the dbect matesfals Peice vaalance ts 4 4,980 Cfavea ble calculate the d%ectmatedals guamfty vasiance as shn beloo thect mateRals guana, volan Pice. Ch,Goo pounds-16, 600 pound) X $ 2.80 = Thus, the dbed mateslals quanih vaolare ts 5,600 (onfavo balle)

note 1 Calculate the Standasd 2uatity. as standard uanttyo actual pooduin 36 Pounds x , coo ontg shown below 14,600 pounds 2. calculate the drsect Jabous catoe valanre as Shoon be lo co H (sfandaad -Actual sate) xActual

thus, the dsec Jabou vate vaianae 9,ooo (unfavosable Calculate the actual ơatepe hous as sheun belowt Actual droed Jabos cost Adtual dibect Acboas Actual ate peo how 4 12 000 (standard houss-Actual hous) X standa sate

Thus, the dioect Jabo ebfictency Note 31 calculate the standadso be oked Ros actual pooduct?on os Shoton below standaad hous Actual polucton x słandaud hous ,00 hous.